Jurisprudentiol – Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Advance Ruling – Central Excise - "Yum Creamy" and "Yum Chusky" shall be classifiable under headings 04039090 and 22029030 respectively; “Yum Chusky” eligible for exemption under the Notification No. 01/2011-CE dated 01/03/2011 - AAR

"YUM Creamy" is made by mixing sugar, flavour, vitamins, wheat and rice flour with cow's milk. Since the stabilizers, sweeteners etc. are permissible additives as mentioned in the relevant HSN Notes, the product "Yum Creamy" will be correctly classified under heading 04039090 of CETA. Any beverages based on milk and flavored with cocoa or any other substance will fall for classification under Chapter Heading 22 of the CETA and appropriate heading would be 22029030 of CETA.

Income Tax

Income tax - Whether when assessee pays for business and commercial rights like business claims, business records, contracts and skilled employees in slump sale of running business, such rights are akin to a licence, eligible for depreciation u/s 32(1)(ii): Delhi HC

THE issue before the Bench is - Whether when assessee pays for business and commercial rights like business claims, business records, contracts and skilled employees in a slump sale of a running business, such rights are akin to a licence, eligible for depreciation u/s 32(1)(ii) as intangible assets. And the verdict goes in favour of the assessee.

Service Tax

Advance Ruling - Service Tax - Identical questions pending before CESTAT - No Advance Ruling: AAR

IF Ruling is given by AAR on the same issue pending before CESTAT and if CESTAT is free to free to render a ruling ignoring what is being ruled by this Authority, it could lead to incompatible decisions concerning the same question, being rendered by two different Authorities on an identical transaction. In the facts and circumstances of this case, such a situation should be avoided. This will be in furtherance of the spirit of enacting the bar to the jurisdiction of this Authority to entertain an application for advance ruling, when the identical question is pending before an authority under the Act, the Tribunal or Court.

See our columns Tomorrow for the judgements